CNOOC to Raise $4.41B in Shanghai Listing

Reuters
Monday, April 11, 2022

Chinese oil giant CNOOC Ltd said on Monday it will raise 28.08 billion yuan ($4.41 billion) in a share listing in Shanghai, after setting the price for what will be mainland China's 11th-biggest public stock offering.

Fundraising will be expanded to 32.29 billion yuan if an over-allotment "greenshoe" option to buy and sell more shares, issued to investment banks underwriting the deal, is fully exercised, the company said in a sales prospectus.

CNOOC, China's largest offshore oil producer, priced its Shanghai offering at 10.8 yuan ($1.69) per share, a 13% premium to its Hong Kong share price on Friday. It said it would use the share sale proceeds to fund one gas and seven oilfield projects in China and overseas, and to replenish capital.

The firm's Hong Kong shares fell 3.3% in Hong Kong on Monday morning, more than the 2.5% drop in the benchmark Hang Seng index.

The Shanghai sale comes after CNOOC was delisted last October by the New York Stock Exchange after Washington added the firm to a trade blacklist citing suspected connections to the Chinese military. State-backed rivals PetroChina and Sinopec are already listed in Shanghai.

It also comes as a number of Chinese companies have paused Shanghai listing plans citing disruption to business life in the city, under lockdown to fight China's biggest coronavirus outbreak in two years.

CNOOC seeks to take advantage of soaring global oil prices as Russia's war on Ukraine pushes up already high energy prices. CNOOC expects first-quarter profit to jump 62%-89% from a year earlier, after registering record profit, and output in 2021. Read full story

CNOOC priced its Shanghai offering, which will make the top 10 of China's listing if the greenshoe option is fully exercised according to Refinitiv data, at 23.88 times earnings, or 1.05 times net assets.

($1 = 6.3610 yuan)

(Reporting by Harshita Swaminathan and Samuel Shen; Editing by Uttaresh.V and Kenneth Maxwell)

Categories: Finance Industry News Activity Production Asia

Related Stories

Petronas, Inpex Secure Oil and Gas Exploration Rights off Indonesia

Turkey Discovers New Black Sea Gas Reserve

Indonesia's Medco Starts Production at Natuna Sea Fields

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

CNOOC Puts Into Production New Oil Field in South China Sea

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

CNOOC Brings Online Second Phase of Luda Oil Field Project in Bohai Sea

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

CNOOC Starts Production at Offshore Oil Filed Equipped with CCUS Tech

Kazakhstan Looks to Improve Oil Production Agreements Terms

Current News

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Petronas, Inpex Secure Oil and Gas Exploration Rights off Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com